Friday, November 6, 2009

Decisive time for Nifty. Chances are fifty-fifty

Nifty starts trade on friday morning to a global bullish momentum lead by US stock markets on positive data. Dow Jones clocked a 200 point gain, its biggest one day gain since July.

Indian markets yesterday took a U-turn much to the dismay of the bears after government ordered all listed, profitable central public sector enterprises (CPSEs) to meet the mandatory listing norm of at least 10 per cent public ownership.

Prominent among PSU gainers include RCF, IFCI (rumours of stake sale). The momentum is likely to continue in the PSU space for some time while market is gearing towards another round of beating if technical analysts were to be believe. Traders are setting their eye on 4850 for Nifty, the most respected level in the 4000-5000 range.

FII's seem to be in the withdrawl mode from the last couple of weeks. We might expect a deeper correction this month coupled with a holiday filled december. We believe in the domestic story especially consumption driven sectors are likely to hog limelight in the years to come